Answer:
Payback period = 3 years
Explanation:
<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>
<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>
<em>Payback period =The initial invest /Net cash inflow per year
</em>
The cash inflow = Net operating income + Depreciation
= 105, 000 + 45,000 = 150,000
Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.
Payback period = 450,000/150,000
= 3 years
Payback period = 3 years
Answer: $4,690
Explanation:
From the above, Chuck can include the following with his itemized deductions,
County Real Estate Tax,
School District Tax on Realty,
State Income Tax estimated Payments and
State income tax withholding.
Calculating the above,
= 950 + 670 + 1,010 + 2,060
= $4,690
the amount of taxes that Chuck can include with his itemized deductions is $4,690.
Answer: $126,613
Explanation:
Net Present value of Project A is:
= Present value of $50,000 annuity + Present value of residual value - Initial investment
Present value of $50,000 annuity:
= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate
= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%
= $248,382
Present value of residual value:
= 8,000 / ( 1 + 12%)⁸
= $3,231
Net present value
= 248,382 + 3,231 - 125,000
= $126,613
Answer:
B. The marginal cost of going to Ft. Lauderdale decreases.
Explanation:
Consider marginal cost and benefit before making a purchase.
Marginal cost is the increase or decrease of the cost of a particular actions.
Marginal benefit is the increase or decrease of the benefit of the action.
For example, if two items are identical and priced differently, the marginal benefit increases when the lower price is selected.
If two items are similar but not identical you would have to assess the cost and benefits of each more.
If marginal cost exceeds the marginal benefit you shuold not purchase the item or consider another option.
In this case, the only option that may reverse this desition is that the marginal cost of going to Ft. Lauderdale decreases.
